Net Income Per Common Share and Net Income Per Common Unit

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Net Income Per Common Share and Net Income Per Common Unit

Net Income Per Common Share and Net Income Per Common Unit

(Amounts in thousands, except share and unit data)

Essex Property Trust, Inc.

	Three Months Ended March 31, 2016					Three Months Ended March 31, 2015
	Income		Weighted- average Common Shares	Per Common Share Amount		Income		Weighted- average Common Shares	Per Common Share Amount
Basic:
Net income available to common stockholders	$	77,981	65,405,654	$	1.19	$	59,363	64,185,455	$	0.92
Effect of Dilutive Securities	—		151,985			—		209,225
Diluted:
Net income available to common stockholders	$	77,981	65,557,639	$	1.19	$	59,363	64,394,680	$	0.92

Weighted average convertible limited partnership units of 2,227,865 and 2,184,314, which include vested Series Z Incentive Units, Series Z-1 Incentive Units, 2014 Long-Term Incentive Plan Units, and 2015 Long-Term Incentive Plan Units, for the three months ended March 31, 2016 and 2015, respectively, were not included in the determination of diluted EPS because they were anti-dilutive. The related income allocated to these convertible limited partnership units, which includes vested Series Z-1 units, aggregated $2.8 million and $2.1 million for the three months ended March 31, 2016 and 2015, respectively. Additionally, excludes 958,972 DownREIT units as they are anti-dilutive.

Stock options of 77,200 and zero for the three months ended March 31, 2016 and 2015, respectively, were excluded from the calculation of diluted earnings per share because the assumed proceeds per share of these options plus the average unearned compensation were greater than the average market price of the common stock for the years ended and, therefore, were anti-dilutive.

Essex Portfolio, L.P.

	Three Months Ended March 31, 2016					Three Months Ended March 31, 2015
	Income		Weighted- average Common Units	Per Common Unit Amount		Income		Weighted- average Common Units	Per Common Unit Amount
Basic:
Net income available to common unitholders	$	80,765	67,633,519	$	1.19	$	61,426	66,369,769	$	0.93
Effect of Dilutive Securities	—		151,985			—		209,225
Diluted:
Net income available to common unitholders	$	80,765	67,785,504	$	1.19	$	61,426	66,578,994	$	0.92

Stock options of 77,200 and zero for the three months ended March 31, 2016 and 2015, respectively, were excluded from the calculation of diluted earnings per share because the assumed proceeds per share of these options plus the average unearned compensation were greater than the average market price of the common stock for the years ended and, therefore, were anti-dilutive. Additionally, excludes 958,972 DownREIT units as they are anti-dilutive.